The pet industry is expected to thrive as more Thais, particularly the younger generation, choose to raise pets instead of having children. Despite ongoing economic challenges, the sector has been barely affected.
Milin Veraratanaroj, chairman of Tang Ngee Soon Superstore, one of the largest traditional wholesale chains in Udon Thani, said he noticed a significant decline in younger Thais' interest in having children since the pandemic began.
This shift has affected sales of baby-related products in the stores he manages, particularly formula and diapers.
"Diaper sales dropped by roughly 20-30% in the first quarter of 2025 year-on-year," he said.
Mr Milin said he is concerned that Thailand's declining birth rate could pose long-term economic risks.
Many young people now perceive raising children as a financial burden, and are opting for pets such as dogs, cats, rabbits and squirrels, he said.
Data from the Bureau of Registration Administration in the Department of Provincial Administration indicate Thailand's population has been steadily declining since 2020.
At the end of 2024, the population was estimated at 66 million.
In 2024, there were more than 462,000 births, while roughly 571,000 individuals died. In the first quarter of 2025, fewer than 100,000 babies were born and more than 147,000 people died.
Poolperm Thongcharoenpoolporn, chief financial and accounting officer at Thonglor Pet Hospital Co Ltd, said the booming pet industry is expected to continue to thrive.
Many Thais treat their pets as family members, fuelling a demand for personalised pet products, such as breed-specific food options, he said.
Mr Poolperm anticipates the pet industry will grow at a single-digit rate this year.
TMBThanachart Bank's research arm, ttb analytics, estimated the pet industry was worth 75 billion baht in 2024.
While some pet owners may become more cautious with spending and cut back on accessories, he said he is optimistic overall business sentiment has had little effect on the industry.
Thonglor Pet Hospital targets mid- to high-income customers and continues to see steady demand, said Mr Poolperm.
He also noted a rise in pet-related spending in tourist destinations outside Bangkok, which he attributed to the recovery of the tourism industry.
"We're seeing more foreign customers, as well as locals involved in tourism-related businesses. The tourism revival appears to be lifting spending in these areas," said Mr Poolperm.
He predicted the trend of raising pets rather than children would continue, although spending habits may differ across customer segments.
Demand for pets surged during the pandemic, but adoption rates have since returned to normal.
However, there is concern about the potential for pet food production to exceed demand, said Mr Poolperm.
Cats continue to be the top choice among new pet owners based on their compatibility with small living spaces such as condos. Unlike dogs, cats don't require outdoor walks or regular exercise, he said. Mr Poolperm also observed a growing interest in rabbits and squirrels as pets.